Credit Card Limit ... too high?
September 15, 2011 4:27 AM Subscribe
I applied and got a new credit card. Fine. Then I checked the credit limit and it was way higher than expected! Normal?
posted by moiraine to work & money (19 answers total)
I am in my mid-20s, no debt, pay off my credit card bills in full every month. I have an after-tax annual salary of ~£40 K and bonus of £10 - 20K. I have 3 credit cards with limits ranging from £1000 to 2000.
I applied for a credit card (primarily because of their low foreign transaction charges) and my credit limit is £7500! That's 3x my monthly salary! A couple of questions:
1) Is this high relative to my income? How do they determine credit limits? I ask because my three other cards have much lower limits.
2) Should I keep this or should I ask the limit to be lowered? I ALWAYS pay off my bills in full and I never carry a balance; I'm fairly controlled in my spending and my savings rates is about 40% (not even trying). The only reason why I'm asking whether I should get a lower limit is because I'm worried about credit card fraud. Should I be?